Murphy Oil (MUR) should explore various options, including a possible sale, Oppenheimer's Fadel Gheit says, believing recent steps to improve shareholder value - such as a $1B buyback authorization and U.S. retail spinoff plans - make it more attractive on an ongoing basis.

With Third Point successfully convincing Murphy Oil (MUR) to spin off its U.S. retail business, Deutsche Bank analyst Paul Sankey thinks Occidental Petroleum (OXY) and Hess (HES) likely will be next, since "in both cases, investors have major questions over strategy and execution, and both are trading below NAV.” ConocoPhillips (COP) is viewed as a sleeper pick. (also)

Hess (HES+3.8%) shares are strong on Murphy Oil's (MUR+8.8%) move to spin off its U.S. fuel-making business into a new company. Conoco used a similar strategy earlier this year when it spun off its fuels, petrochemicals and pipeline businesses into Phillips 66. HES operates in two segments - exploration and production, and marketing and refining - making it a potential candidate for a spinoff.

Murphy Oil's (MUR+7.8%) move to spin off its U.S. fuel-making and distribution business into a new company could unlock up $5/share in trapped enterprise value, Simmons analysts say, and “could be a sign for more aggressive moves to continue to improve the valuation in shares (more aggressive divestments, for example)." Chalk up at least one item, and maybe two, on Dan Loeb's wish list.

Murphy Oil (MUR) +7.3% premarket after announcing it will spin off its U.S. downstream business into an independent company. MUR also authorizes a $2.50/share special dividend and $1B share buyback program, and says it’s still working to divest its U.K. downstream operations and continuing to review options with respect to "selected assets."